G-8 Will Expand Permanently to G-20 for Economic Issues

The announcement comes as G-20 leaders gather in Pittsburgh to craft a new framework for global economic policymaking in the wake of the worst financial crisis since the Great Depression.

“It’s a reflection of the world today,” a White House official told the Wall Street Journal on Thursday. “It’s basically pulling international cooperation into the 21st century.”

The G-20, whose membership ranges from China to to Saudi Arabia to South Africa, accounts for approximately 85 percent of the world’s gross domestic product. Under the new framework, the G-8 – which consists of the United States, Britain, Canada, France, Germany, Italy, Japan, and Russia – will meet primarily to discuss topics such as international security.

The G-20 will push to improve international economic policy by reducing the world’s reliance on U.S. consumers, and boosting domestic demand in China, according to officials interviewed by the WSJ. Additionally, the G-20 will move to trim U.S. borrowing from abroad while encouraging more investment from Europe.

Shifting power from the G-8 to the G-20 has been a priority for President Barack Obama, who has questioned the G-8’s suitability for confronting the world’s economic challenges. Aides to the president characterized the most recent G-8 meeting in July as little more than a way station between G-20 meetings, according to the New York Times.

“We view this meeting and this discussion as a midpoint between the London G-20 summit and the Pittsburgh G-20 summit,” Mike Froman, the president’s chief negotiator, told the NYT at the July meeting of the G8.

In addition to announcing a new framework for global policymaking, G-20 leaders are expected to use the Friday finale of the Pittsburgh summit to introduce a range of other economic policy aims. Among those goals are a more aggressive approach to dealing with tax havens and possible guidelines for executive pay and capital requirements for the world’s biggest banks.

We're not going anywhere.

Stand up for truly independent, trusted news that you can count on!